John Paul Phelan (Fine Gael)

I am not raging against anything but there should be some taxation on the huge profits that are made by some of the larger stud farms from the exemption for stallion fees. That would be equitable and it would be consistent with what the Minister has said. However, the smaller operations should continue to have an exemption in some shape or form.

Coolmore is certainly a flagship enterprise for the country and I respect the fact that it is a serious employer in the Senator's constituency. However, if we are seeking equity across the board, the expectation that there would be a tax charge on those fees is a real and proper one. Nevertheless, Senator Mansergh is correct that it is a speculative business for the vast majority of people in the industry. Small operations are greatly exposed and we should ensure they are protected. If we were to bring the full rigours of the system to bear on those people, many of them would not be able to operate in the future and only the large scale operations, such as Coolmore, would remain. That would be detrimental.

Horse breeding is a flagship industry for this country and I do not wish to see anything undermine it. However, in the interests of equity and fairness, a change had to be made. Now we must examine what the Minister will propose to put in place for the future and, in that context, there is room to ensure that the majority of people involved in this sector are looked after.